# From boom to bottom and now big change: Renault and Nissan reshape alliance Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-06 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Renault and Nissan Revamp Alliance amidst Turmoil Meta Description: Explore the history of the Renault and Nissan alliance from its founding in 1999 to the recent tensions and leadership changes, including key events and URL: https://financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliancehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-06t123246z1lynxmpej150kertroptp4nissan-renault-1736814481471-compressed.jpg) PARIS/TOKYO (Reuters) – French carmaker Renault and its Japanese partner Nissan announced a deal on Monday to redesign their decades-long alliance aimed at easing tensions between the partners and putting them on equal footing. The partnership, which has grown to include junior member Mitsubishi Motors, was founded in 1999 and long dominated by former Renault and Nissan top executive Carlos Ghosn. It gave Nissan a 15% stake in Renault, on a par with the French state, but no voting rights. By contrast [Renault – which at the time was rescuing Nissan](https://www.financedigest.com/nissan-renault-to-invest-600-million-to-make-6-new-models-in-india.html "Nissan, Renault to invest 0 million to make 6 new models in India") – took a 43% holding in its Japanese ally, giving the French a dominant role that has long been a point of contention. The alliance was thrown into turmoil following Ghosn’s arrest on financial misconduct [charges](https://www.financedigest.com/volkswagen-bp-could-expand-e-car-charging-alliance-to-other-regions.html "Volkswagen, BP could expand e-car charging alliance to other regions") in late 2018 and his subsequent ouster as alliance chairman. The following is a timeline of key events in the alliance’s history. 1996Ghosn joins Renault as executive vice president as the [firm struggles with falling profitability](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit"). The [next year](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year"), he unveils a 20 billion franc cost-cutting plan, reviving his reputation as “Le cost killer. [Renault’s profitability jumps three-fold by the end](https://www.financedigest.com/exclusive-nissan-seeks-tech-tie-up-without-renault-as-alliance-nears-end-of-road.html "Exclusive-Nissan seeks tech tie-up without Renault as alliance nears end of road") of 1998. 1999Renault in March comes to the rescue of debt-laden Nissan, which had lost money for three [years in a row](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row"). Ghosn reveals his “Nissan Revival Plan”, targeting a [return to profitability](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease") in the 2000 financial year. After cutting 21,000 jobs, or 14% of the workforce, shutting some plants and overhauling Nissan’s corporate structure, Nissan hits its goals a [year ahead](https://www.financedigest.com/three-waves-of-fintech-disruption-leading-trends-for-the-year-ahead.html "Three waves of Fintech disruption: Leading trends for the year ahead") of schedule. Ghosn is feted as a business celebrity in Japan. 2000Ghosn becomes CEO of Nissan. By the end of 2000, Nissan is contributing roughly half of Renault’s [annual net profit](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases"). 2002Nissan announces its “Nissan 180” three-year plan, targeting an increase of 1 [million vehicles in global](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") sales by 2005. 2005Nissan misses its sales target, and [announces a new three-year plan](https://www.financedigest.com/eu-announces-plans-to-lead-green-industrial-revolution.html "EU announces plans to lead green industrial revolution"). Ghosn becomes president and CEO of Renault. 2008Nissan again [fails to meet](https://www.financedigest.com/virtual-meetings-the-big-mistakes-that-can-make-online-communications-fail.html "Virtual Meetings – The big mistakes that can make online communications fail") its main financial targets. The automaker announces another [five-year plan](https://www.financedigest.com/vw-to-speed-up-electric-shift-in-five-year-plan.html "VW to speed up electric shift in five-year plan") but then scraps it due to the financial crisis. 2013 [Renault and Nissan](https://www.financedigest.com/renault-and-nissan-in-talks-that-could-reshape-autos-alliance.html "Renault and Nissan in talks that could reshape autos alliance") announce a common plan for low-cost development and manufacturing of vehicles. The next year, the two groups converge more functions, [targeting 10 billion euros](https://www.financedigest.com/euro-zone-inflation-seen-just-above-ecbs-target-in-2025-poll-shows.html "Euro zone inflation seen just above ECB’s target in 2025, poll shows") ($11 billion) in annual savings by about 2022. 2016Nissan takes a controlling stake in Mitsubishi. Ghosn becomes chairman, making him chairman of all three partners. 2017Both Nissan and Renault [post record](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") operating profits, though Nissan still falls short on some targets. The alliance together [sells more than 10 million](https://www.financedigest.com/britains-superdry-sells-asia-pacific-ip-for-50-million.html "Britain’s Superdry sells Asia Pacific IP for million") vehicles globally, making it one of the world’s biggest automakers. 2018Ghosn is arrested in Japan on charges of underreporting his salary for more than a decade. He is accused of other crimes including using [Nissan funds](https://www.financedigest.com/nissan-pushes-partner-renault-to-sell-down-stake-may-raise-funds-source.html "Nissan pushes partner Renault to sell down stake, may raise funds -source") for his own purposes. Ghosn, who has denied wrongdoing, is fired as chairman of the alliance. 2019Nissan and Renault reel from the aftermath of Ghosn’s arrest. Both automakers [appoint new boards as profits continue](https://www.financedigest.com/onguard-continues-to-invest-in-uk-growth-strategy-with-latest-appointment.html "Onguard continues to invest in UK growth strategy with latest appointment") to sink.The alliance [names a new chairman](https://www.financedigest.com/novartis-names-firmenich-ceo-as-chairman-designate-of-sandoz-2.html "Novartis names Firmenich CEO as chairman designate of Sandoz"), Michelin veteran Jean-Dominique Senard, while Makoto Uchida becomes Nissan’s new chief executive. [Tensions escalate](https://www.financedigest.com/european-stocks-drop-as-russia-ukraine-tensions-escalate.html "European stocks drop as Russia-Ukraine tensions escalate") after Renault attempts to tighten capital ties with Nissan, a move rebuked by the Japanese automaker. On Dec. 29, Ghosn escapes from Japan onboard a chartered flight. He eventually arrives in Lebanon, his childhood home, where he is barred from [leaving the country](https://www.financedigest.com/new-research-reveals-the-countries-leaving-cash-behind.html "New research reveals the countries leaving cash behind") but remains protected from extradition. 2020With the COVID-19 crisis triggering losses at both car makers, Renault secures a state-backed [loan worth 5 billion](https://www.financedigest.com/trafigura-enters-3-billion-loan-to-supply-germanys-sefe-with-gas.html "Trafigura enters billion loan to supply Germany’s Sefe with gas") euros to shore up its liquidity. Luca De Meo becomes the French [group’s CEO](https://www.financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staley.html "Shareholder group ISS backs Barclays board over former CEO Staley") in July.Alliance Chairman Senard rules out any merger of the carmaking partners, [saying they don’t need](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says") to combine to be efficient. 2022De Meo announces plans to split Renault’s [electric vehicles](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S") (EV) business from its combustion engine operations. On Oct. 8-9, media reports say Nissan wants Renault to [cut its stake](https://www.financedigest.com/sap-to-cut-3000-jobs-explore-qualtrics-stake-sale.html "SAP to cut 3,000 jobs, explore Qualtrics stake sale") to 15%, in exchange for investing in Renault’s EV unit. Technology-sharing emerges in October as a sticking point between the two companies in the talks, people familiar with the negotiations said. Renault later provides proposals to address those concerns, and a deal is announced on Jan. 30. As part of the deal, [Renault agrees to reduce its stake in Nissan](https://www.financedigest.com/nissan-and-renault-agree-to-overhaul-alliance-this-time-as-equals.html "Nissan and Renault agree to overhaul alliance, this time as equals") to 15% from around 43%. On Feb. 6, the partners unveil new details of the revamp, including a commitment by Nissan to [buy up to 15% in Renault’s electric vehicles unit](https://www.financedigest.com/uks-competition-watchdog-to-examine-edf-buying-ges-nuclear-turbine-unit.html "UK’s competition watchdog to examine EDF buying GE’s nuclear turbine unit") Ampere. [(Reporting by Reuters](https://www.financedigest.com/indonesia-to-tighten-used-shoe-import-controls-after-reuters-report.html "Indonesia to tighten used shoe import controls after Reuters report") bureaus; Editing by Josephine Mason) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---